US-based digital currency exchange Coinbase yesterday established a corporate venturing fund called Coinbase Ventures to back early-stage startups.
The size of the fund has not been disclosed. Coinbase will seek out companies in the cryptocurrency space that have the potential to impact the industry and will initially invest without a requirement to formalise strategic partnerships.
Coinbase noted that it may also invest in competitors when it makes sense to do so in order to allow the ecosystem to thrive. A particular focus for the fund will be on startups launched by former employees.
Portfolio companies will not, however, receive preferential treatment for securing asset status on Coinbase, but will have to conform to the same framework that the exchange uses for all cryptocurrencies.
The fund follows Coinbase general manager Dan Romero telling news publication Business Insider that the company hopes to build a diversified business that touches on all aspects of cryptocurrency.